The most recent events in the SHIB ecosystem, particularly the mass burning of Shiba Inu tokens, have raised concerns in the cryptocurrency community. Nonetheless, the impact of this burn on the price of SHIB has been a topic of discussion among investors and followers.
Shiba Inu rally begins due to major token burning event
Ethereum’s famous meme coin, Shiba Inu, held a major token burn event last week on November 21, which has certainly brought interest back into the world of digital currencies. While the market has been volatile, the SHIB community has been engaging in intentional coin burnings to reduce circulating supply, and the reality is that this is the best way to go.
Shibburn, a platform that tracks SHIB token burns, recorded an impressive 47,872% increase in tokens burned over the past 24 hours, ending with 28.12 million SHIB tokens.
Determine the impact of token burn on the market price of SHIB
This aggressive method of burning SHIB tokens to inflate the value of SHIB through scarcity has sparked an interesting market reaction. One of the wallets, 0x74dceef… 665 burned approximately 27,120,000 SHIB tokens. Through this, the community-led initiative burned over 410 billion SHIB tokens.
As a result, the latter was trading at $0.000008323, down 4%, contrary to expectations for Shiba Inu’s price movement. What is noteworthy is that SHIB’s 24-hour trading volume surged, reaching $145.86 million. This represents an increase of almost 36.38% over the past day and is probably a breakout point based on the cryptocurrency market situation earlier today. Large-scale burning activity hinting at a bullish trend in SHIB prices may have revealed a more complex market reaction considering the recent price decline. Many cryptocurrencies are left wondering how token burning actually affects their value.